Activision Blizzard shareholders today voted to approve Microsoft’s pending acquisition of the company, but that doesn’t mean it’s a done deal as there are several other hurdles to overcome.
As announced in a press release today, over 98% of shares voted in favor of the acquisition, which is expected to close sometime in Microsoft’s upcoming fiscal year between July 2022 and June 2023.
Voters approved the acquisition at a price of $95 per share – significantly higher than the stock’s recent price, which has slowly fallen from the low $80 mark over the past month and has ranged between $76 and $76 over the past few days moved $77 a share.
The declining share price prior to the transaction could indicate a lack of shareholder confidence in the eventual transaction. While the vote was overwhelming, there are still a number of other potential challenges ahead before the deal is finally finalized.
A major hurdle is the likelihood of an investigation by the Federal Trade Commission. Lina Khan, its recently appointed head, has already shown a willingness to tackle major antitrust issues in the technology space, including blocking an Nvidia acquisition and retrial against Meta. The deal also requires regulatory approvals abroad, including in China.
The Activision Blizzard acquisition comes at a time of ongoing turmoil within and around the company. The deal itself has sparked allegations of insider trading, but even more notable is the ongoing California lawsuit against the publisher, accusing it of promoting a “brotherhood culture” and subjecting female employees to unequal pay and sexual harassment.
Activision Blizzard Lawsuit Timeline: The Story So Far